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Why BlackBerry (BB) Stock Is Gaining in After-Hours Trading

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Shares of BlackBerry (BB - Free Report) surged as much as 5% in after-hours trading Monday after the company said it will partner with Microsoft (MSFT - Free Report) on security solutions for Microsoft Office applications such as Excel, PowerPoint, and Word.

The new partnership is focused on workers who depend on cybersecurity and compliance while working in mobile computing environments, including bank employees, healthcare professionals, and lawyers. BlackBerry will help these users access the aforementioned apps safely on both Apple and Android devices.

BlackBerry famously ditched its phone manufacturing business recently, but the deal with Microsoft underscores its strength: enterprise. Its once-iconic smartphones were a popular choice among companies that needed their employees to stay connected on the go, and now, BlackBerry is continuing its enterprise focus with its new software-first business model.

Last week, BlackBerry shares popped after the orchestrator of this new focus, Chief Executive Officer John Chen, signed a new contract to stay with the company for at least five more years. Chen is responsible for BlackBerry reducing its workforce by thousands and saving the firm from the brink of tech irrelevance.

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More Stock News: This Is Bigger than the iPhone!

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